Angle IncAnnounces That Its Gross Profit Rose 5% but Its Income

question 133

Multiple Choice

Angle Inc.announces that its gross profit rose 5% but its income before income taxes fell.Which of the following statements is correct?

• A) This is not possible given that net income is determined by gross profit.
• B) This must mean that selling, general, and administrative expenses increased by more than 5%.
• C) This must mean that sales revenue rose more than expenses.
• D) This must mean that cost of goods sold fell.

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Definitions:

Character Displacement

Character displacement is an evolutionary phenomenon where species that compete for the same resources develop distinct traits or behaviors, reducing overlap in their ecological niches.

Competitive Exclusion

A principle stating that two species competing for the same limited resources cannot coexist at constant population values, if other ecological factors remain constant.

Edge Effect

A phenomenon in ecology where increased diversity and different species are found at the boundary between two different habitats.

Coevolution

The process whereby two or more species reciprocally affect each other's evolution over time.